1. Ekurhuleni, South Africa
Upgrading for Growth
Ekurhuleni, South Africa
Duma Nkosi, Executive Mayor
Neville Chainee, Executive Director, Housing

2. Location

3. Ekurhuleni: City of Potential
Adjacent to Johannesburg
Fastest growing city in South Africa – 4.12% per year
Contributes more than 20% of the gross geographic product of Gauteng, South Africa’s most productive province
1,889 square kilometres
Population nearly 3 million

4. National Policy Framework
A pro poor agenda – application of upgrading for growth principles in all projects
Government policy to upgrade all informal settlements by 2014
Capital subsidy of about $8,000 per plot for low income earners, either for contractor-built or self-built house and infrastructure
Achieve spatial integration and mixed income communities
Promote urban renewal to create sustainability

5. City Development Strategy
Integrating marginalised communities
Basic water supply and sanitation by 2010 and electricity by 2012
Developing sustainable solutions, especially energy
Mining and heavy industrial legacy - treatment and rehabilitation of environmentally hazardous areas
Effective land management – need to balance public and private interests
Mixed Land Use Concepts

6. Comprehensive Sustainable Human Settlement Plan
Matching backlogs, informal settlements and waiting list for suitable land for housing
Integration of information and future plans with other line departments (Engineering and Social Infrastructure)
Funding model – 8 year roll out budget plan

7. Informal settlement challenges in Ekurhuleni
104 informal settlements
households in informal housing ( on serviced stands but still in shacks)
217% increase in households earning zero income between

8. Informal settlements
Red areas represent the informal settlements in Ekurhuleni
An informal settlement – designed and developed by the residents

9. Making the best of difficult circumstances

10. Upgrading for Growth Project
To develop communities through promoting the five development capitals:
Social Capital
Human Capital
Physical Capital
Financial Capital
Natural Capital
To use upgrading of infrastructure and housing as springboard for
Economic empowerment
Gains in health and welfare of residents

11. Household Survey: Findings
Almost 50% of households want to remain where they are currently located
Approximately 30% want to move closer to the city centre
50% of households consist of 1 or 2 persons
34% unemployed
Only 4% self employment
Low skills – 9% completed secondary education, under 2% with any tertiary education

12. Upgrading for Growth: Implementation principles
Must be sustainable
Linkages between human development and physical development
Integrate energy, economic development and housing needs
Should explore the potential within the current legislative environment to maximize potential for innovation – need to review current standards and regulations
Requires a re-think of current “silo” structure of municipal departments

13. UFG Settlement Design Principles
Minimise disruption
Maximise economic opportunity
Maximise linkages
Encourage participation
Permit variety and freedom
Ensure that solutions are affordable
Promote economic development
Promote energy efficiency

14. Promote Economic Development
Leveraging investment by major companies
Outsourcing
Linkages with other companies
Supporting small business with grants and technical assistance
Create an enabling environment for small business
Permitting home-based enterprises etc
Appropriate town planning principles and practice
Training

15. Promote Energy Efficiency
Explore appropriate energy sources for the poor
Assist households to use energy more efficiently
More efficient appliances
Low cost solar water heating
Support passive energy saving methods
Ceiling insulation
Correct orientation of house

16. UFG Key Issues
Community workers to bridge gap between informal settlement residents and municipality
Creation of a human settlements department
Improve collaboration between sectors of housing, economic development and energy
Address land management issues
Migration and urban growth
Role of local government in upgrading

17. Global lessons for South Africa
Can upgrading be used to leverage other types of investment?
How can local governments be most effective in stimulating LED?
In your experience does it make sense to apply appropriate and fair building and planning standards equally to rich and poor?
What has been the experience with housing vouchers and similar systems in self-help housing?